Walmart(NYSE: WMT)One of the largest retailers in the world has been a reliable stock for long -term investors. Over the past ten years, it has gained almost 270% as a large market S&P 500 Advanced index around 160%. The turnover in the reinverted dividends, the total profitability of Walmart was 340% compared to the total return of 205% of the S&P 500.Then they show seven reasons why it is still worth buying with both hands today.
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The Walmart comparable store sales metric, which needed the year -on -year growth of open stores for at least 12 months (plus their e -commerce sales), has increased constantly during the last decade. Succeeded in growing sales by renewing their shops, publishing more private labels brands, coinciding AmazonPrices, expanding their e -commerce and digital capabilities, and taking advantage of their massive brick and mortar stores to fulfill online orders.
His Sam Club Chain also grew at a healthy pace, keeping the rival pace Costco(NASDAQ: Cost) in the Membership Warehouse Club Market. Walmart’s international growth became slowed by 2022 and the prosecutor 2023 (which ended in January 2023), as he yielded some of his weakest companies abroad, but this rationalized segment flourished over the next two years.
Metric
Prosecutor 2021
Prosecutor 2022
Fiscal 2023
Prosecutor 2024
Fiscal 2025
Walmart US Comps growth
8.6%
6.4%
6.6%
5.6%
4.5%
Sam’s Club U.S. Coms Growth
11.8%
9.8%
10.5%
4.8%
5.9%
Walmart International Sales Growth
1%
(16.8%)
0%
10.6%
6.3%
Total growth of income
6.7%
2.4%
6.7%
6%
5.1%
Data source: Walmart. Coms growth excludes fuel sales.
Walmart’s growth over the last five years demonstrates the resistance of inflation, geopolitical conflicts and other disturbing macro headings. For their 2026 prosecutor (now running), it hopes that their clean sales will grow from 3% to 4% constantly.
The total number of Walmart stores worldwide decreased from 11,501 at the end of the year 2020 to 10,593 at the end of the year 2022. However, a large part of this decrease was caused by its foreign defeats.
It has been expanding its footprint since then and ended 2025 with 10,711 physical locations. This rate of stable expansion should help him expand his moat and maintain his leadership against his minors in detail.
The Walmart scale allows you to keep the margins higher and operational than many other retailers. While augmented inflation tightened its gross and operational margins by 2022 and the first half of 2023, both numbers were bouncing in the second half of 2023 and 2024 as the headers decreased.
These resistant margins suggest that it will be able to withstand the impact of the unforeseen rates of President Donald Trump, although most of the products they sell are manufactured in China and other Asian countries. Walmart should be better to convince its suppliers abroad to previously deliver more products to the United States warehouses before the largest part of Trump’s rates is receded, taking advantage of their scale to negotiate better prices for their future shipments, which their alternates absorb some of these higher costs or transmit the costs of consumers to consumers by increasing their prices. The last solution would undoubtedly be the least preferable to its customers, but the chain could still sell its products at lower prices than its competitors.
The 1% Walmart Dividend performance may seem calm, but its dividend has increased annually for 52 consecutive years, winning the title of Dividend King. He also spent only 52% of his free cash flow on his dividend payments for the last 12 months, so he has a great capacity to make future ascents.
Walmart bought 6% of his outstanding shares over the last five years, 17% of his shares over the last decade and 36% of his shares over the last twenty years. Its constant policy of repurchase of shares, combined with its regular dividend uphill hikes, indicates that it is committed to returning a large amount of its free cash flow to its investors.
From the year 2025 to the 2028 financial year, the analysts expect their income to grow on an annual rate of 4%, as their EPS increases to an annual rate of 11%. Investors should take these estimates with a grain of salt, but suggest that Walmart may continue to grow independently of Trump’s rates and their growing trade war, sticky inflation and other macroeconomic challenges.
That is why the proportion of 36 prices for 36 Walmart earnings does not look too expensive. Costco, who also has a lot perennial advantagesQuestioned with 54 times the wins forward. Walmart’s action is not cheap, but the company’s resilience in this hard market justifies its multiple assessment. This is probably why it has still increased by 6% to date, even when the S&P 500 has dropped by 7%. Investors who buy the shares today should be well rewarded in the coming years.
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John Mackey, a former CEO of Whole Foods Market, a Amazon subsidiary, is a member of the Board of Directors of the Motley Fool. Leo Sol He has positions in Amazon. The Motley Fool has positions and recommends Amazon, wholesale, and Walmart. The mold’s fool has a Outreach policy.
